NEW DELHI: Kris Gopalakrishnan, Co-Chairman, Infosys says that the IT sector in India is projected to add around 2-2.5 lakh jobs in the next one year. He however cautioned of an economic uncertainity in the short term.
"In the medium to long term I am very optimistic about the prospect for the IT industry because technology investment will continue to grow and most of the companies today are looking at India based development centres, captive centres or service providers to support them. The critical mass has already been built in India and so I am very optimistic about the prospects for companies that are both multinationals and domestic companies based in India," said Gopalakrishnan.
Gopalakrishnan told ET Now: "When I look back in 2011, I am actually positive because in spite of a slowdown in the world economy the industry has done reasonably well. Last time in 2008, the growth came down to single digit whereas this time Nasscom projects a growth of about 16-17% which is actually very good growth rate given where the global economy is.
"Commenting on Rupee depreciation, Gopalakrishnan said, "The volatility is always very difficult to handle. In the last 6 months, the rupee has depreciated by 20%, it is unprecedented and such volatility is very difficult for anybody to plan. If you plan to import something, already your costs have gone up by 20%. That is very difficult to plan and factor in. We need less volatility, we need more predictability on rupee movement.
"Recent surveys of chief information officers (CIOs) by research firms like Citigroup and Forrester show that IT major Infosys will be much more under pressure in the months to come than its peers.
The Forrester report that surveyed over 1,000 CIOs found that in the next 12 months Infosys, which had 105 respondents, would see a 4% fall in client spends. TCS with 111 respondents will see a 23% rise in client spends, Cognizant with 78 respondents will see a 13% rise, Wipro with 94 respondents will see a 13% rise, and HCL Tech with 44 respondents will see a 11% rise.
V Balakrishnan, CFO of Infosys, recently said that the global uncertainty has made it tough to acquire large contracts as client spends will remain slow. He added that clients are cautious about committing to long-term projects and it would be difficult for Infosys to achieve the top end of the 3%-5 % sales growth guidance for October-December and the 17.1-19 0.10% sales growth for 2011-12.
Article Source: http://economictimes.indiatimes.com/news/news-by-industry/jobs/expect-it-sector-to-add-2-2-5-lakh-jobs-in-next-1-year-kris-gopalakrishnan-infosys/articleshow/11167422.cms?google_editors_picks=true
Monday, December 19, 2011
Loan for Kingfisher Airlines awaits study: Sources
MUMBAI: Lenders to cash-strapped Kingfisher Airlines, which has been grounding planes and cutting routes to stay aloft, are awaiting a report on the airline's viability before they approve a $133 million loan, banking sources said on Monday.SBI Capital Markets Ltd, a unit of State Bank of India, has been hired by the banking consortium to draft a report on the carrier's financial outlook.
That report has yet to be submitted, two sources with direct knowledge of the matter said.
The chairman of State Bank of India, the biggest lender to Kingfisher, said the banks were looking for a solution.
"We are trying to help Kingfisher," Pratip Choudhuri told Reuters on Monday morning.Asked if the banks were open to lending more to the airline, he said: "Everything is on the table".
Kingfisher shares rose more than 2 percent on the comments before closing up 0.23 percent at 21.75 rupees. The airline's shares have fallen about 67 percent since the start of the year, cutting its market value to about $200 million.
While there is no deadline for the viability report, banks have asked SBI Capital to work "expeditiously", one source said.
Kingfisher, controlled by flamboyant liquor tycoon Vijay Mallya, has been seeking additional short-term working capital loans of about 7 billion rupees ($133 million) to fund operations. The airline has also been looking to raise equity.
"Banks have re-iterated that any additional funds will only be considered once the viability report is before them and if banks are convinced about it," the source added.
The airline, which has a negative net worth, aims to halve its debt to about 37 billion rupees through the sale and lease-back of aircraft, sale of a property in Mumbai, and conversion of rupee loans into lower-interest foreign loans.
Conglomerate Sahara India, which co-owns Formula One motor racing team Sahara Force India along with Mallya, plans to lend it more than $47 million, a source familiar with the matter said.
The airline announced on Monday it would become part of the global oneworld alliance from February, which it said would help it improve its competitive offering and financial position.
TURBULENT TIMES Kingfisher has not made a profit since it was set up in 2005 It has recently slipped to third place in market share in India after being overtaken by IndiGo, India's only profitable airline, as it cuts flights on loss-making routes.
Over 100 pilots have quit recently and suppliers, including airports and oil companies, have stopped extending credit.
A Kingfisher executive, who declined to be identified, told Reuters the airline had grounded 15 planes, but declined to say why or how long the planes had been grounded.
The Economic Times reported earlier that Kingfisher had grounded some of its Airbus planes, including the wide-bodied A330s used for international routes, because it was unable to meet maintenance and overhaul expenses.
Article Source: http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/loan-for-kingfisher-airlines-awaits-study-sources/articleshow/11168374.cms
That report has yet to be submitted, two sources with direct knowledge of the matter said.
The chairman of State Bank of India, the biggest lender to Kingfisher, said the banks were looking for a solution.
"We are trying to help Kingfisher," Pratip Choudhuri told Reuters on Monday morning.Asked if the banks were open to lending more to the airline, he said: "Everything is on the table".
Kingfisher shares rose more than 2 percent on the comments before closing up 0.23 percent at 21.75 rupees. The airline's shares have fallen about 67 percent since the start of the year, cutting its market value to about $200 million.
While there is no deadline for the viability report, banks have asked SBI Capital to work "expeditiously", one source said.
Kingfisher, controlled by flamboyant liquor tycoon Vijay Mallya, has been seeking additional short-term working capital loans of about 7 billion rupees ($133 million) to fund operations. The airline has also been looking to raise equity.
"Banks have re-iterated that any additional funds will only be considered once the viability report is before them and if banks are convinced about it," the source added.
The airline, which has a negative net worth, aims to halve its debt to about 37 billion rupees through the sale and lease-back of aircraft, sale of a property in Mumbai, and conversion of rupee loans into lower-interest foreign loans.
Conglomerate Sahara India, which co-owns Formula One motor racing team Sahara Force India along with Mallya, plans to lend it more than $47 million, a source familiar with the matter said.
The airline announced on Monday it would become part of the global oneworld alliance from February, which it said would help it improve its competitive offering and financial position.
TURBULENT TIMES Kingfisher has not made a profit since it was set up in 2005 It has recently slipped to third place in market share in India after being overtaken by IndiGo, India's only profitable airline, as it cuts flights on loss-making routes.
Over 100 pilots have quit recently and suppliers, including airports and oil companies, have stopped extending credit.
A Kingfisher executive, who declined to be identified, told Reuters the airline had grounded 15 planes, but declined to say why or how long the planes had been grounded.
The Economic Times reported earlier that Kingfisher had grounded some of its Airbus planes, including the wide-bodied A330s used for international routes, because it was unable to meet maintenance and overhaul expenses.
Article Source: http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/loan-for-kingfisher-airlines-awaits-study-sources/articleshow/11168374.cms
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